Government shutdown 2025: How it has hurt the U.S. economy

Follow MarketWatch's live coverage of the government shutdown's damage to the U.S. economy as the closure approaches record-breaking length.

US economy at risk of wobble as lower-income consumers get squeezed

The U.S. consumer's durability as a prop for the economy may be tested in coming weeks as family budgets, particularly among the less affluent, are stressed by rising healthcare costs, the potential loss of federal food benefits,

How the U.S. economy is defying gravity—and how insights into human behavior help us understand why

U.S. economists may be barely holding on by their fingernails over the current state of the American economy, but strangely, consumers don’t seem to care. Here’s why.

How the U.S. Economy Has Defied Doomsday Predictions on Tariffs

Inflation is lower than expected after President Trump’s steep levies.

Both subprime and super prime loans are on the rise, signs of a K-shaped economy that is a ‘prescription for real trouble’

Credit loan data aligns with what some economists are calling a K-shaped economy, one where higher-income earners are spending as they usually would on discretionary purchases like travel and premium goods, while lower-income earners cut back on dining out or trading down on purchases at the grocery store.

Trump got what he wanted from the Fed chair. But the economy is still wobbly.

Trump lambasted Powell this week, calling him “Jerome ‘Too Late’ Powell” in a speech to Asian business leaders .

Poll: 60% of Americans disapprove of how Trump is handling the economy — a new high

This isn’t a purely partisan trend. Over the last month, the perception that the economy is getting worse increased by 7 points among Democrats (from 81% to 88%), by 5 points among independents (from 58% to 63%) and by 4 points among Republicans (from 16% to 20%).

As the shutdown drags on, here’s how it can drag down the economy

History has shown that the economy typically rebounds from a shutdown within a couple of months. But each day it drags on brings a greater risk that the economy won’t just bend, it will start to break — and rupture livelihoods in the process,
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Big Tech thrives in this economy, as smaller firms struggle

Turns out that divergence is showing up in corporate America, too. Profits are surging at the biggest companies — while profits at smaller companies are more sluggish. When we’re talking about the biggest companies pulling in the most profits, we’re really talking about big tech companies.

Texans sour on economy, leaders as 2026 election nears, UT poll shows

A new UT Austin poll finds Texans increasingly pessimistic about the economy and political leadership, with rising concerns over costs, weak approval ratings and early signs in the 2026 Senate race.

Government Shutdown Has Already Cost US Economy $18 Billion This Year, CBO Says

The federal government shutdown has already cost the US economy at least $18 billion this year, a figure that “will intensify” in the weeks to come, according to the Congressional Budget Office.
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